1 excellent FTSE 250 stock I’d buy in August without hesitation

 1 excellent FTSE 250 stock that I would buy without hesitation in August

Greggs (LSE: GRG) has been a very profitable investment over the past five years. FTSE 250 shares rose 141% ex-dividend. In 10 years it is almost 500%.But the past 18 months haven't been great for Greggs shareholders, with the share price down 22%.Still, I wouldn't be surprised to see the stock regain lost ground and strength to new highs in the future. H S ere's why.

In the six months to July 1, the bakery's first-half sales rose to £844m, up 21.5% on the same period last year. Meanwhile, underlying profit before tax (excluding exceptional items) rose 14.2% to £63.7m.Management said cost inflation has started to moderate, boosting margins, and expects that trend to continue in 2H. However, it did not revise upwards its full-year lead, which was a bit surprising.

In six months, the firm opened 94 new stores and closed 44. However, it will open eight new stores across the UK in August and September. This will include a new thoroughfare that will widen the existing 15.The interim dividend was increased by 6.7% to 16p. The full-year payout is expected to be 49.5p per share, giving the stock a modest but welcome dividend yield of 2.3%.

One of the concerns of some investors is the possibility that the UK is approaching "peak Greggs". This is the hypothetical point at which consumption of its baked goods will peak, after which sales and profits will stagnate along with the stock price. While that's a legitimate concern in theory, it doesn't concern me. The company continues to find new and creative ways to get more food into the hands of consumers. It is due to open cafes in several Sainsbury's locations by the end of the year, joining Tasty By Greggs cafes in Primark stores.

Gatwick Airport Greggs is now open 24 hours and is the eighth airport store in the UK. And new menu options such as hot wraps are being trialled and the Greggs app loyalty program is growing significantly.Moreover, the firm remains extremely ambitious and plans to expand its holdings to at least 3,000 stores, up from 2,378 at the end of July. Its revenue is expected to grow to £2.4 billion in 2026. Finally, international expansion is always an option.

The Golden Arches Handbook

I have to say, when I read about its drive-thru and 24-hour opening, I couldn't help but think of McDonald's. Especially since Greggs now also has over 400 franchise stores. It's definitely not a bad plan, as the world's most successful fast food restaurant chain grows stronger every year.

Greggs' value for money customer proposition also shares some similarities with McDonald's. So it's no surprise to me that both companies are gaining market share while consumer budgets are tight.Like McDonald's, Greggs has an exceptionally strong brand and loyal customers. In recent years, it has raised the prices of its food products without affecting sales, demonstrating the power of pricing.

Finally, the stock has a price-to-earnings (P/E) multiple of 22, down from 27 in FY219. If I had spare cash to invest in August, I'd get some Greggs shares. The post 1 excellent FTSE 250 shares I would buy without hesitation in August appeared first on The Motley Fool UK.

Pound coins for sale - 51 pence?

It seems ridiculous, but we almost never see stocks that look this cheap. Still, this recent "Best Buy Now" has a price-to-book ratio of 0.51. In plain English, this means that investors are effectively entering a business that holds £1 in assets for every 51p they invest!

Of course, this is the stock market, where money is always at risk — these valuations can change and there are no guarantees. However, some risks are much more interesting than others, and at The Motley Fool, we believe this company is one of them.What's more, it currently boasts a stellar dividend yield of around 8.5%, and it's possible for investors to jump in at near-historic lows right now. Want to make a name for yourself?

Ben McPoland holds positions at McDonald's. Motley Fool UK recommended J Sainsbury Plc. The opinions expressed about the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that we are better investors with a diverse range of insights.

Looking for a prime investment opportunity in the FTSE 250 this August? Look no further! We've identified stocks that deserve your attention, and it's a buy without hesitation. With strong fundamentals, growth potential and a proven track record, this company is poised to deliver significant returns. Let's dive into what makes this stock stand out and the key factors that make it an excellent choice for savvy investors.

Company overview

Our top pick for August is , a market leader with a solid market presence and a history of outperforming the competition. As a key player in this sector, it constantly demonstrates its ability to adapt to market trends and take advantage of new opportunities, making it a resilient and forward-looking company.

Strong financial performance

One critical aspect of any investment is the company's financial performance. it has a rich financial history, boasting stable revenue growth and strong profit margins. This stability is a testament to the company's effective management and its ability to generate consistent returns for its shareholders.

Resilience and adaptability

In a rapidly changing business environment, adaptability is the key to long-term success. It has demonstrated remarkable resilience, successfully navigating challenging economic conditions and even thriving in the face of adversity. This resilience stems from its strategic vision, diverse product/service portfolio and agile approach to business operations.

Innovation and growth

Investors looking for growth opportunities will find this an attractive option. The company has proven experience with innovation, consistent introduction of new products/services that capture market demand. With a progressive approach, it is well positioned to take advantage of emerging trends in potentially unlocking significant value for investors.

Market leadership

Being the market leader in your industry benefits from a strong competitive advantage. This advantage provides stability and allows the company to influence market trends and pave the way for sustained growth. The company's dominant position predisposes it to further expansion and makes it an attractive investment for those seeking exposure to a leading market player.

Diversification and risk management

Investing in FTSE 250 shares with a strong risk management strategy is essential. It has demonstrated the ability to effectively manage risk with a diversified business model that spreads risk across different segments. This balanced approach helps protect the company from potential downturns in any single market and provides investors with a sense of security.

August presents an excellent opportunity to invest in the best performing FTSE 250 share, which combines financial stability, adaptability, innovation and market leadership. With a proven ability to withstand economic challenges and a track record of sustained growth, it offers the potential for significant returns to investors who recognize its value. Don't miss out on this impressive investment opportunity - consider adding it to your portfolio today.